Planning for your wedding might have taken you months or even years. You likely had a “to-do” list and followed it carefully. However, when it comes to divorce, many couples don’t spend much time preparing for it.
You can avoid some of the most negative repercussions with your finances if you take the time to follow some of the things that should be on your divorce to-do list.
Create a financial file: This is where you should put copies of all of your financial statements and documents. Include in this file your bank, retirement and brokerage statements, real estate documents and tax returns. Copies of your credit card statements and auto loan statements should also be included. Make a second file to keep somewhere safe away from your home.
Be discreet: It’s best to be cautious when speaking to people who already deal with your finances. If you and your spouse jointly use an attorney, tax preparer or financial professional, then he or she may have to tell you spouse what you two talked about.
Know your debt: Any debt that the two of you accumulated during your divorce will still be up to both of you to repay. Pull your credit report so you know what debts you have that are in your name alone and in both of your names.
Budget wisely: Make sure you correctly estimate your future expenses. By doing so, you can better negotiate during your divorce for a settlement that is most helpful.
If you have questions about any of the above, speak with your divorce attorney.
Source: Huffington Post, “The Divorce To-Do List,” Kyung Dickerson, March 08, 2016